E.R.E.V.ENTREP REGIONALE D'ESPACES VERTS : revenue, balance sheet and financial ratios

In 2024, E.R.E.V.ENTREP REGIONALE D'ESPACES VERTS achieves revenue of 55 k€. Activity remains stable over the period (CAGR: -3.4%). Significant drop of -38% vs 2023. After deducting consumption (-7 k€), gross margin stands at 62 k€, i.e. a rate of 112%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2 k€, representing 3.5% of revenue. Positive scissor effect: EBITDA margin improves by +4.5 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 303 €, i.e. 0.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 42%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 22%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.4 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 2.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 233.82. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 13.8x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 331 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 49 days. The gap of 282 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 109 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 337 days of revenue, i.e. 52 k€ to permanently finance. Over 2016-2024, WCR increased by +196%, requiring additional financing.

Based on 125 transactions of similar company sales (all years), the value of E.R.E.V.ENTREP REGIONALE D'ESPACES VERTS is estimated at 8 699 € (range 3 922€ - 13 600€). With an EBITDA of 1 917€, the sector multiple of 2.8x is applied. The price/revenue ratio is 0.35x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.